(Reuters) – Macy’s Inc (M.N) reported a smaller-than-expected quarterly loss and beat sales estimates on Wednesday, as shoppers stuck indoors due to the COVID-19 pandemic bought more apparel using the department store chain’s app and website.
Shares of the company, which have lost nearly 60% of their value so far this year, were up about 6% before the bell.
To cope with the closure of malls and stores due to coronavirus-related lockdowns, Macy’s has been focusing on its online business giving shoppers the option to buy online and collect from stores.
That helped online sales surge 53% for the second quarter ended Aug. 1.
Net sales fell 35.8% to $3.56 billion, but beat analysts’ estimates of $3.48 billion, according to IBES data from Refinitiv.
Gross margin of 23.6% also improved about 650 basis points from the immediately preceding quarter.
On an adjusted basis, the company lost 81 cents per share, compared to estimates of a loss of $1.77 per share.
Net loss came in at $431 million, or $1.39 per share, in the second quarter, compared with a profit of $86 million, or 28 cents per share, a year earlier.
The company also took non-cash goodwill and impairment charges of $3.1 billion and $80 million respectively so far this year.
(Thestory corrects paragraph 9 to say charges are for “so far this year”, not for “the reported quarter”)